How to calculate the cost of goods sold
Accounting Tools
JUNE 22, 2024
What is the Cost of Goods Sold? The cost of goods sold is the total expense associated with the goods sold in a reporting period. The cost of goods sold is subtracted from the reported revenues of a business to arrive at its gross margin ; the gross margin reveals the amount of profit generated prior to selling, general and administrative expenses. Formula for the Cost of Goods Sold The cost of goods sold is calculated by aggregating the period-specific expense listed in each of the general ledg
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